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Issues:
Admissibility of exemption Notification No. 64/88-C.E. to imported medical equipments by hospital, violation of condition requiring free treatment to outdoor patients, confiscation of goods, imposition of duty, penalty under Customs Act. Analysis: The dispute in the appeal revolves around the admissibility of exemption Notification No. 64/88-C.E. to medical equipments imported by the hospital. The Notification mandates providing free medical treatment to at least 40% of all outdoor patients without discrimination. A show cause notice was issued alleging violation of this condition, leading to the confiscation of goods, imposition of duty amounting to Rs. 56,46,415.00, and a penalty of Rs. 1.00 lakh by the Commissioner of Customs (Airport), Kolkata. The appellant's representative argued that they fulfilled the 40% free treatment condition by providing medical services in outdoor medical camps, which should be considered in calculating the percentage. Citing a decision by the Hon'ble Madras High Court, the representative emphasized that treatment in medical camps should be included in assessing compliance. The Tribunal agreed with this interpretation, referencing the Madras High Court's observation that treatment provided in outdoor medical camps should be factored in when determining the 40% requirement. Consequently, the Tribunal set aside the impugned order and remanded the matter to the Commissioner for reassessment, considering treatment in medical camps. Moreover, the appellant challenged the assertion that treatment was limited to community members only, presenting evidence to the contrary. The Tribunal acknowledged this challenge and directed the Commissioner to investigate this aspect during the fresh determination of compliance with the 40% free treatment condition. As the matter was remanded for further assessment, the Commissioner was instructed to examine whether treatment was indeed extended without discrimination as claimed by the appellant. In conclusion, the Tribunal allowed the appeal by remand, emphasizing the importance of considering treatment provided in outdoor medical camps and directing a thorough investigation into the provision of free treatment to outdoor patients without discrimination.
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